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May 10, 2012

How to Become a Good Loan Candidate

From car purchases to mortgages, almost everyone needs loans
throughout their life. When you need a loan, you’ll want to ensure you are able
to get the loan you need, at a desirable interest rate. That’s why you should
do everything you can to make yourself a good candidate for a loan.

A credit score is primarily based on credit report
information typically sourced from credit
bureaus (see below). Maintaining a good credit score is a key factor
in determining your suitability for a loan. If you are just starting out
establishing credit, or need to improve your credit, here are a few things to
keep in mind:

Request and review copies of your credit report and verify the information for accuracy.

Obtaining a Credit
Report

You are entitled to one free credit report—within a 12-month
period—from each of the three major credit bureaus. The bureaus run
AnnualCreditReport.com where you can get
your free credit report. Your credit score is available for an extra $10 fee.
If you dispute something on your report you can request an investigation and/or
ask that a note be included in your file. The FICO credit score is the most
common. It ranges between 300 and 850. As a rough rule of thumb, ideal
loan candidates—those with the easiest time getting a loan at the lowest
interest rate and associated fees—usually have scores above 740. Bank of
Luxemburg will work with each customer on an individual basis to find the best
loan option for you, even if your credit score is not ideal.

Bank of Luxemburg is:Local – Local management and local decision making.Loyal – We are loyal to our customers and the communities we serve.Lasting – Bank of Luxemburg has lasted through all the economic cycles since 1903 and is committed to moving forward as a safe and sound independent community bank.